Malaysia is seeking €226.13 million (approximately $265 million) in compensation from a Norwegian defence firm following the cancellation of a contract, Defence Minister Mohamed Khaled Nordin said on Friday.
The Norwegian Kongsberg Defence & Aerospace AS had signed a contract to supply Naval Strike Missiles for the Royal Malaysian Navy.
The claim includes €129.86 million in direct losses for payments already made by the government and €96.26 million in indirect losses covering additional costs and damages linked to the failed project, local media outlet Malay Mail reported.
“The actual additional costs, or ‘overrun costs’, to be borne by the government have yet to be finalised as they depend on the settlement method agreed upon and the replacement weapons system currently under evaluation,” Mohamed Khaled told parliament.
The two countries fell into a diplomatic dispute in May since Norway revoked export approvals for certain technologies.
The minister also provided an update on the navy's littoral combat ship KD Maharaja Lela and said sea trials conducted on April 29 showed positive progress.
He said the vessel is undergoing phased testing of its navigation, propulsion and other critical systems before formal acceptance by the navy, which remains subject to successful sea acceptance trials and the completion of any required technical corrections.
